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  • Facebook Announces its Acquisition of WhatsApp for $16 Billion


    Facebook recently announced its intentions to acquire the popular messaging app, WhatsApp in an initial cash and stock deal worth roughly $16 billion, not including an additional $3 billion provision for restricted stock units. According to Facebook, the social media giant said it plans to purchase the mobile messaging firm with $4 billion in cash and approximately $12 billion worth of Facebook shares. The additional $3 billion payout in restricted stock units will be granted to WhatsApp founders and employees and they vest in four years after the deal closes.

    Facebook founder and CEO, Mark Zuckerberg, said the following in a prepared statement:

    WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable. I've known [WhatsApp founder Jan Koum] for a long time and I'm excited to partner with him and his team to make the world more open and connected.
    It should be noted that the WhatsApp brand will be maintained along with its headquarters in Mountain View, California. After the completion of the acquisition, Koum will take a seat at Facebook’s Board of Directors. Facebook mentioned that it will keep the cross-platform messaging app an independent entity and run the service much like the current implementation of Instagram. As of right now it remains unclear how the acquisition will affect WhatsApp’s “mantra” of an ad-free experience, especially as Facebook becomes increasingly aggressive in leveraging the scope of its platform for such money-making activities.

    Another thing that remains unknown is what the buy means for WhatsApp’s pricing structure, which currently stands at a yearly $0.99 fee for unlimited usage. The app was free when it debuted in the iOS App Store but the company chose to institute the annual charge to keep the service ad-free under a crush of new users.

    One thing we do know is that the major acquisition hints at a strong push in advancing Facebook’s messaging service, Facebook Messenger, which is also widely used but has been eclipsed by third-party services that offer a more user-friendly and connected experience. For now however, WhatsApp and Facebook Messenger will remain separate standalone apps.

    Although WhatsApp touts a massive installed worldwide user base, Facebook seems to be making definite inroads into Europe, where the messaging app is very popular.

    We’ll have to wait and see what’s to come.

    Source: Facebook (Press Release)
    This article was originally published in forum thread: Facebook Announces its Acquisition of WhatsApp for $16 Billion started by Akshay Masand View original post
    Comments 16 Comments
    1. Carvensno's Avatar
      Carvensno -
      16 or 19 billion? News said 19. Just curious lol though a ballsy move to spent that much.
    1. wolverinemarky's Avatar
      wolverinemarky -
      That's a ballsy move that there gonna give FB stock hopefully that doesn't tank or it won't be worth much. I would sell it as soon as I could
    1. thazsar's Avatar
      thazsar -
      So...
      WhatsApp charged $1/year for service. That means 16 billion people would have to have service in order for Facebook to recoup their investment in a year. Oh wait, there aren't 16 billion people in the world.

      Okay, we'll cut it in half...8 billion = 2 year investment. Wait, that means everyone in the world owns a smartphone and uses WhatsApp!?

      Alright, how bout 4 billion, 4 year investment, so half the world uses WhatsApp...right???

      I'm not seeing where the investment actually starts making money. Anybody?
    1. mlee19841's Avatar
      mlee19841 -
      Money money money money.
    1. politicalslug's Avatar
      politicalslug -
      It's official: Zuckerfuqqer has lost his mind and the board of directors is totally cool with it.
    1. Faresismail's Avatar
      Faresismail -
      Facebook has thousands of analysts working for them. They probably have a reason for paying that amount of money and by probably i mean definitely.
    1. politicalslug's Avatar
      politicalslug -
      Just like Google's analysts were certain $12 billion was a reasonable amount to pay for Motorola, only to turn around a couple years later and sell it for a small fraction of what they paid. There is a reason Apple only makes small purchases.
    1. Ambi_Valence's Avatar
      Ambi_Valence -
      Deleted.

      Thx.
    1. docmagoo2's Avatar
      docmagoo2 -
      Used what's app for a long time. Considering deleting it now as I have data retention worries about Facebook.
    1. se23's Avatar
      se23 -
      ^ +1. Have you seen the permissions fb app asks for on android I use fb with random name and details, deleted insta and whatsapp will be next. I really hate this company!
    1. fleurya's Avatar
      fleurya -
      Quote Originally Posted by thazsar View Post
      So...
      I'm not seeing where the investment actually starts making money. Anybody?
      I'm sure they're not buying for the $1 per year. Facebook doesn't charge anything yet they make revenue.

      This is all about consolidation of popular apps like this and Instagram so FB can try to hang onto it's user base and stay relevant while pushing ever more ads in your face so they don't go the way of MySpace.

      Quote Originally Posted by politicalslug View Post
      Just like Google's analysts were certain $12 billion was a reasonable amount to pay for Motorola, only to turn around a couple years later and sell it for a small fraction of what they paid. There is a reason Apple only makes small purchases.
      They kept Moto's patents and IP, that's all they really wanted anyway, and that's what they really paid for.
    1. WHUDS's Avatar
      WHUDS -
      Quote Originally Posted by docmagoo2 View Post
      Used what's app for a long time. Considering deleting it now as I have data retention worries about Facebook.
      Really ? Sad!

      Better stop Emailing since NSA reads and Scans our emails, Better stop downloading since the ISP's track everyone no matter what you use, bottom line: We are monitored everywhere in 2014, there are video cameras recording your driving now ( see them on top of traffic lights and along road) in cities there are cameras everywhere recording you and at stores.

      If you want throw away all electronics and stop driving and live on a mountainside living off the land, but even then they track you down and try to force you to pay taxes.


      By the way the Whatsapp is free with one yr of free service just downloaded it
    1. thazsar's Avatar
      thazsar -
      Quote Originally Posted by fleurya View Post
      I'm sure they're not buying for the $1 per year. Facebook doesn't charge anything yet they make revenue.

      This is all about consolidation of popular apps like this and Instagram so FB can try to hang onto it's user base and stay relevant while pushing ever more ads in your face so they don't go the way of MySpace.



      They kept Moto's patents and IP, that's all they really wanted anyway, and that's what they really paid for.
      Good points! I was ranting and not thinking! LOL!
    1. Co1d Night's Avatar
      Co1d Night -
      Soon WhatsApp will be full of ads (maybe even video ones). Autoplay videos you have to watch before you can send a text. Why do companies intend on buying out products and slap fees on them? Remember when the Internet used to be free, and without ads everywhere?
    1. steve-z17's Avatar
      steve-z17 -
      FB paid way too much money for the company! Unless they know something that we don't, I just don't see the purpose of forking out that much keesh...
    1. Co1d Night's Avatar
      Co1d Night -
      Quote Originally Posted by WHUDS View Post
      Really ? Sad!

      Better stop Emailing since NSA reads and Scans our emails, Better stop downloading since the ISP's track everyone no matter what you use, bottom line: We are monitored everywhere in 2014, there are video cameras recording your driving now ( see them on top of traffic lights and along road) in cities there are cameras everywhere recording you and at stores.

      If you want throw away all electronics and stop driving and live on a mountainside living off the land, but even then they track you down and try to force you to pay taxes.


      By the way the Whatsapp is free with one yr of free service just downloaded it


      That´s exactly the problem with this government and the people who live here. People just don´t care. "Oh, I´m being monitored? Oh well!"

      It´s a violation of privacy. The government does not need to know what I look up on the internet. Your analogy isn´t very good, as there is a fine line between doing something in your HOME vs. in your CAR. Security cameras are used to enforce laws, while Internet monitoring on EVERYONE is just plain invasion of privacy. The Internet is becoming less and less free. Everything has a price tag, and now even the government is pushing a bill out to allow ISPs to control what websites you can view, which ones you can´t, and even set the speeds on which certain websites are accessed. Your ISP will be able to control EVERYTHING. They can make it to where if they do not agree with jailbreaking iPhones, guess what? Good luck getting to this website without installing and configuring a proxy. They can set websites that THEY approve to load faster than unapproved websites. Do you really want the government controlling the Internet?

      The Internet is OURS, not the governments.